Building, Feeding and Paying for a Wealthier World
In their different ways, Caterpillar (NYSE: CAT), Monsanto (NYSE: MON) and Freeport McMoRan Copper & Gold (NYSE: FCX) are all we need to know about the 21st century challenge of building for, feeding and paying for an increasingly affluent global population.
So while it is hard in some way to imagine these companies – or, at the very least, companies like them – having anything but a productive future, the near-term prognosis likely seems less certain. With shares of Freeport McMoRan climbing back into bull market territory at the end of January, and now experiencing their first significant pullback above the 200-day moving average in months, there will likely be many who will be questioning the ability of FCX to attract buyers over the next few days and weeks.
That said, the fact that the stock earned “considering buying” ratings of 8 out of 10 on Friday suggests that traders and active investors may soon be more interested in the stock than it seems. With a short-term positive edge of three-quarters of a percent and a close on Friday just outside of technically oversold territory, FCX is moving nearer to levels where traders historically have been more inclined to buy than sell in the short-term.
Even sharper, short-term edges are apparent in the market for Monsanto. Shares of MON pulled back by more than 1% on Friday, closing lower for a third day in a row (and four out of the past five). With each of MON’s last three closes in technically oversold territory, it is little surprise to see Monsanto with a “consider buying” rating of 8 out of 10, and a short-term, positive edge of more than one and a half percent.
Lastly, pulling back from new, 52-week highs, shares of Caterpillar may be soon providing significantly lower levels for investors interested in buying the stock. CAT sold off by almost 1% on Friday, finishing lower for a second day in a row, and is still trading midway between recent short-term highs and short-term lows. Caterpillar has been trading in bull market territory since early January, and has not closed oversold since it was trading below its 200-day moving average in late December.
Although having a modest short-term edge of a third of a percent, CAT nevertheless has earned ratings of 8 out of 10, putting the stock in our “consider buying” category ahead of trading on Monday.
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David Penn is Editor in Chief of TradingMarkets.com